Published on 2/21/2007 in the Prospect News Structured Products Daily.
New Issue: Morgan Stanley sells $798,000 12.75% RevCons linked to Apple
By Laura Lutz
Washington, Feb. 21 - Morgan Stanley priced $798,000 of 12.75% reverse convertible securities (RevCons) due Feb. 22, 2008 linked to Apple Inc. stock, according to an FWP filing with the Securities and Exchange Commission.
The payout at maturity will be par in cash if Apple stock stays at or above the protection price, 80% of the initial share price of $84.83, during the life of the securities and finishes at or above the initial share price. Otherwise, the payout will be in Apple stock, with the number of shares equal to $1,000 divided by the initial share price.
| Issuer: | Morgan Stanley
|
| Issue: | Reverse convertible securities (RevCons)
|
| Underlying stock: | Apple Inc.
|
| Amount: | $798,000
|
| Maturity: | Feb. 22, 2008
|
| Coupon: | 12.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par in cash if Apple stock stays at or above the protection price of $67.864 and finishes at or above the initial share price; otherwise 11.78828 shares of Apple stock
|
| Initial share price: | $84.83
|
| Protection price: | $67.864, 80% of $84.83
|
| Exchange ratio: | 11.78828, $1,000 divided by $84.83
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 22
|
| Agent: | Morgan Stanley & Co. Inc.
|
| Agent fees: | 2.75%
|
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